* Aussie firmer after better-than-expected retail sales
* New Japan finmin seen less tolerant of stronger yen
* Focus on Friday's U.S. jobs data for dollar's direction
By Kaori Kaneko
TOKYO, Jan 7 (Reuters) - The dollar was steady against a
basket of currencies on Thursday as investors waited for U.S.
nonfarm payrolls data later in the week for hints on the
greenback's direction.
The Australian dollar pared some of its gains on investor
profit-taking after jumping to a 15-month high against the yen
and a two-year peak against the euro on strong retail sales data,
which added to the chances of another rise in interest rates in
Australia as early as February. []
A surprise move by China's central bank which saw it raise
the auction yield of its three-month bills for the first time
since mid-August weighed down commodity prices, prompting
high-yielding currencies such as the Australian dollar to come
off intraday peaks. []
"If China takes a clearer stance on tightening liquidity in
coming months, there is the possibility that market players will
link this to a revaluation of the yuan, raising worries about
commodity and share prices," said Jun Kato, senior chief analyst
at Shinkin Central Bank Research Institute.
The Aussie rose 0.1 percent to $0.9202, having slipped off a
one-month high of $0.9268 <AUD=D4> hit earlier in the day.
Against the yen, the Australian currency was down 0.1 percent at
84.82 yen <AUDJPY=R> after jumping to 85.54 yen, its highest
since late September 2008.
On the euro, the Aussie hit a new two-year high of 0.6415
euros <AUDEUR=R>.
The New Zealand dollar was steady at $0.7377 <NZD=D4>,
shedding gains after touching $0.7433, its highest since late
November.
The dollar index <.DXY>, which measures the value of the
greenback against a basket of currencies, was steady at 77.507.
Traders are keen to see the nonfarm payrolls report for
December on Friday, which could help shape the outlook for when
the U.S. Federal Reserve may raise interest rates.
"Investors are waiting for the U.S. jobs report on Friday but
the current climate in the market is one of investors willing to
take risk," said Tomohiro Nishida, treasury department manager at
Chuo Mitsui Trust and Banking.
The report is expected to show the economy shed 8,000 jobs in
December, after a surprisingly small 11,000 drop in November, a
Reuters poll showed. []
The U.S. currency had lost ground against the euro on
Wednesday when minutes from the Federal Reserve's latest policy
meeting suggested the possibility of more stimulus measures for
the U.S. economy.
The euro inched down 0.1 percent to $1.4399 <EUR=> after
rising as high as $1.4435 on trading platform EBS on Wednesday.
The dollar slipped 0.1 percent to 92.24 yen <JPY=>, having
risen about 0.7 percent the previous day.
The yen came under pressure after news of Japanese Finance
Minister Hirohisa Fujii's resignation on Wednesday.
Japan has named Deputy Prime Minister Naoto Kan as finance
minister, turning to a politician with less hawkish fiscal views
than his predecessor and leaving markets unsure as to whether the
government could rein in spending in the face of a frail economy
and ballooning debt. []
Although this had a limited impact on Thursday, Kan may be
less tolerant of letting the yen strengthen and putting at risk a
fragile export-led recovery from Japan's worst recession since
World War Two.
"Kan gives the impression that he prefers a weaker yen over a
stronger yen," said Mitsuru Sahara, chief manager of currency
derivatives trading at Bank of Tokyo-Mitsubishi UFJ.
"But he is likely to become more cautious about making
comments on exchange rates once he becomes finance minister. The
market is so far showing limited reaction to Kan."
(Additional reporting by Rika Otsuka; Editing by Joseph
Radford)
